Is Shell’s $17 Billion Prelude Project a Failure?

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Royal Dutch Shell’s Australian Prelude LNG working on restarting operations but will not resume full production this year, says an article published in Reuters.

Australian Prelude LNG project

Royal Dutch Shell RDSa.L said that its Prelude floating liquefied natural gas (FLNG) project off Australia, off line since early February, is working on restarting operations but would not resume full production this year.

Prelude FLNG platform closure

The troubled Prelude FLNG platform was shut down following an electrical trip and Shell has faced a number of issues over the past few months in trying to restart full production and now does not expect to ship any LNG before next year.

For more information read our article Shell Suspends LNG Production and Cargo Loadings

Prelude LNG shipping

Shell said in a statement that, “Full production is not expected to resume before year end. Prelude is a multi-decade project, and our focus is on delivering sustained performance over the long term.” 

The company hopes to resume shipping LNG from Prelude in the first quarter of 2021, a person familiar with the situation said.

Prelude project plagued with problems

The $17 billion Prelude project, centred around the world’s biggest floating liquefaction vessel, has been plagued with problems. 

It shipped its first cargo only last year, more than two years behind schedule, and has yet to achieve steady output at its design capacity of 3.6 million tonnes a year of LNG.

The project is jointly owned by Shell, Japan’s Inpex Corp 1605.T, Korea Gas Corp 036460.KS and a unit of Taiwan’s CPC Corp.

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Source: Reuters

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